Help! Defaulted Student Loans (and other debt fun)

[TheGreatBuzz]

I’m about to buy a new camper for us.  Gonna hunt around for the best rate.  Waiting to hear from dealer what their people can do.

[PleaseBlitz]

https://apnews.com/6feebff38e56ebbc6bc598071aaeec11
 

Quote

The average rate on a 30-year fixed mortgage has hit a record low of 3.29%, driven down by investors shifting money into the safety of U.S. Treasurys as the coronavirus outbreak has deepened. 
 

Mortgage buyer Freddie Mac said Thursday that the average on the benchmark 30-year loan tumbled this week from 3.45% last week. The new rate is the lowest since Freddie Mac started tracking it in 1971, the company said.

 

[TD_washingtonredskins]

30 minutes ago, PleaseBlitz said:

https://apnews.com/6feebff38e56ebbc6bc598071aaeec11
 

 

 

How nice - I'm closing on a house in May or June. 

[tshile]

Just now, PleaseBlitz said:

Me too bud. 

Yeah just read it. 
 

the truth is when I refi’d they waved all fees except for the ones they can’t wave (like county processing fees) My refi costs were made up for in 6 months by the reduction  my monthly payment. 
 

I went from 5 to 3.75. It was 5 because it was a construction rider on a 30 year and so I got hosed on rates. 
 

it would be tempting to do the math but it’s hard to imagine another refi is worth it...

[tshile]

2 hours ago, Springfield said:

I just refinanced my home at the end of February.  ****ing bull****.

On the topic of bs timing

 

i closed on my first house in November of 2007. There was a 7500 tax credit available because of the crisis. You had to pay it back in even payments over 7 years or something, when you filed taxes, or whatever the balance was when you sold the house. 
 

in December of 2007 they passed a revision that made the total 8000, and you didn’t have to pay it back. 
 

I was bitter. 
 

actually I’m still ****ing bitter about that. 

[PleaseBlitz]

https://www.google.com/amp/s/www.buzzfeednews.com/amphtml/sarahmimms/coronavirus-bill-ends-student-loan-payments-interest-6

 

All federal student debt is suspended through September 30. 
 

[Renegade7]

Heads up: some of these folks calling about student loan forbearances because of Covod aren't from Department of Education.  Some third party tried to set me up for a payment plan for once the "forbearance period is lifted". I'm still in my window after finishing my masters, doesn't smell right at all.

[PleaseBlitz]

The only person that should be contacting you is your servicer. And probably not by phone. 

[Corcaigh]

On 3/5/2020 at 11:31 AM, TheGreatBuzz said:

I’m about to buy a new camper for us.

 

What are you looking at?

[TheGreatBuzz]

41 minutes ago, Corcaigh said:

 

What are you looking at?

2020 Vanleigh Beacon 39rlb.

[ClaytoAli]

15 hours ago, PleaseBlitz said:

https://www.google.com/amp/s/www.buzzfeednews.com/amphtml/sarahmimms/coronavirus-bill-ends-student-loan-payments-interest-6

 

All federal student debt is suspended through September 30. 
 

Not federal student loans through private lenders.

[bushwack]

16 hours ago, PleaseBlitz said:

https://www.google.com/amp/s/www.buzzfeednews.com/amphtml/sarahmimms/coronavirus-bill-ends-student-loan-payments-interest-6

 

All federal student debt is suspended through September 30. 
 

You also have to apply for a forbearance.  The lenders aren't automatically handing them out. 

[PleaseBlitz]

5 hours ago, ClaytoAli said:

Not federal student loans through private lenders.

Well, loans through private lenders are not federal loans, so they are not covered by the forbearance. As well-documented in this thread, I exited the federal system and refinanced into a loan with a private lender (currently SoFi). Although there is absolutely nothing requiring them to make any kind of concessions, of their own accord they will let me stop paying for 2 months if I wanted to. 

[skinfan2k]

I need some help with looking for a new credit card to use for rewards.  I have the Chase Sapphire Reserve right no and the Chase Freedom Unlimited as well as the Chase Ink Business.  I'm not sure if its worth having the CSR anymore but i still have 120k chase points. Any help?

[EmirOfShmo]

48 minutes ago, skinfan2k said:

I need some help with looking for a new credit card to use for rewards.  I have the Chase Sapphire Reserve right no and the Chase Freedom Unlimited as well as the Chase Ink Business.  I'm not sure if its worth having the CSR anymore but i still have 120k chase points. Any help?

Capital One Venture card is good.

 

https://www.nerdwallet.com/best/credit-cards/rewards

[ClaytoAli]

Ok

Edited March 28, 2020 by ClaytoAli

[PleaseBlitz]

The rate on my student loan is down to 0.78%.  

[PokerPacker]

9 hours ago, PleaseBlitz said:

The rate on my student loan is down to 0.78%.  

I guess there's not much incentive to pay it off, huh?

[skinfan2k]

Thoughts on refinancing?  Wait more.  I have 22 years on my loan and debating to go to 15. 

[PleaseBlitz]

2 things:

 

1.  My annual end-of-year update:  My student loan, which began at $240,000 in 2014 is now down to $45,000.  I could easily have paid it off by now, but the rate on it is currently 0.75%, so I have no incentive to pay any more than the minimum.  Instead, my annual bonus this year went into a managed asset account that is getting me about 7%.

 

2.  Now that Dems look likely to take the Senate, President-Elect Biden's support for student loan forgiveness appears to be potentially in play.  It is not clear (to me) exactly what his plan would be, but he is not supportive of universal student loan cancellation.  

 

Personally, I think everyone should have to pay back their student loans, but the interest should be knocked down to 0.5%.  The 0.5% will pay the cost of servicing (which is a real cost), but otherwise remove the profits for student lending.  This would dramatically reduce the burden on borrowers.  The 2019-2020 federal student loan interest rates are currently 4.53% for undergraduate loans, 6.08% for unsubsidized graduate loans and 7.08% for direct PLUS loans.  That adds thousands or tens of thousands of dollars to the total repayment and, as is often the case, kills people doing income-based repayment because the interest compounds until they are just totally ****ed.  So basically, I think student should pay back the money the borrowed with nearly zero interest. 

[Ball Security]

15 minutes ago, PleaseBlitz said:

2 things:

 

1.  My annual end-of-year update:  My student loan, which began at $240,000 in 2014 is now down to $45,000.  I could easily have paid it off by now, but the rate on it is currently 0.75%, so I have no incentive to pay any more than the minimum.  Instead, my annual bonus this year went into a managed asset account that is getting me about 7%.

 

2.  Now that Dems look likely to take the Senate, President-Elect Biden's support for student loan forgiveness appears to be potentially in play.  It is not clear (to me) exactly what his plan would be, but he is not supportive of universal student loan cancellation.  

 

Personally, I think everyone should have to pay back their student loans, but the interest should be knocked down to 0.5%.  The 0.5% will pay the cost of servicing (which is a real cost), but otherwise remove the profits for student lending.  This would dramatically reduce the burden on borrowers.  The 2019-2020 federal student loan interest rates are currently 4.53% for undergraduate loans, 6.08% for unsubsidized graduate loans and 7.08% for direct PLUS loans.  That adds thousands or tens of thousands of dollars to the total repayment and, as is often the case, kills people doing income-based repayment because the interest compounds until they are just totally ****ed.  So basically, I think student should pay back the money the borrowed with nearly zero interest. 

I think any policy around student loan relief should focus on curbing the rising cost of education, increasing access to underserved populations, and funding vocational outlets.  It’s complicated, and I’m not smart enough to articulate the details, but it goes beyond loan forgiveness.

 

In your suggestion, there would need to be caps on how much you can borrow and what that money can go to.  When I went to grad school earlier this century I could borrow so much money that was beyond the cost of tuition.  It was unsubsidized so the interest rate was higher.  If I could borrow that at 0-ish %, I would have taken out much more and put it in the market.

 

I do think there’s a lot of pent up consumer demand that is not met because of student loans, and although I wouldn’t benefit directly, it’s hard to see how loan relief wouldn’t benefit the economy as a whole.

[PleaseBlitz]

14 minutes ago, Ball Security said:

I think any policy around student loan relief should focus on curbing the rising cost of education, increasing access to underserved populations, and funding vocational outlets.  It’s complicated, and I’m not smart enough to articulate the details, but it goes beyond loan forgiveness.

 

Totally agree that this issue can be hit from multiple angles.  I think the things you mentioned are all great ideas, but as you said, complicated.  The vast majority of the student loan market is already federalized and already guaranteed by the government, so knocking down interest rates is a fairly simply solution that would have a big impact.  

 

14 minutes ago, Ball Security said:

 

In your suggestion, there would need to be caps on how much you can borrow and what that money can go to.  When I went to grad school earlier this century I could borrow so much money that was beyond the cost of tuition.  It was unsubsidized so the interest rate was higher.  If I could borrow that at 0-ish %, I would have taken out much more and put it in the market.

 

When I went to grad school in 2010-2013, I was allowed to borrow the cost of tuition plus a pre-determined cost of living stipend (plus books), and no more. 

 

14 minutes ago, Ball Security said:

 

I do think there’s a lot of pent up consumer demand that is not met because of student loans, and although I wouldn’t benefit directly, it’s hard to see how loan relief wouldn’t benefit the economy as a whole.

 

Absolutely.  There is $1.6 TRILLION in outstanding student loan debt.  With the interest, that is probably $2.5 TRILLION during any given 10 year period not going to consumer goods, housing and other economic drivers. 

[Ball Security]

8 minutes ago, PleaseBlitz said:

 

Totally agree that this issue can be hit from multiple angles.  I think the things you mentioned are all great ideas, but as you said, complicated.  The vast majority of the student loan market is already federalized and already guaranteed by the government, so knocking down interest rates is a fairly simply solution that would have a big impact.  

 

 

When I went to grad school in 2010-2013, I was allowed to borrow the cost of tuition plus a pre-determined cost of living stipend (plus books), and no more. 

 

 

Absolutely.  There is $1.6 TRILLION in outstanding student loan debt.  With the interest, that is probably $2.5 TRILLION during any given 10 year period not going to consumer goods, housing and other economic drivers. 

I did my program at night while working full time, so maybe the amount they would allow me to borrow outside of tuition was limited to cost of living. But since I had income, it seemed like too much.

Just like any policy, the framing of it matters and I think politicians and media do a really poor job of it.  When I talk to people about student loans I get answers like “it’s not fair, I saved for and paid for college.” Or “I’ve already paid my loans back, it’s not fair.”  And those are totally understandable feelings.  But student loan relief benefits the economy and society as a whole, not just borrowers.  Though the solution is more complicated than wiping out debt.

[PleaseBlitz]

7 minutes ago, Ball Security said:

I did my program at night while working full time, so maybe the amount they would allow me to borrow outside of tuition was limited to cost of living. But since I had income, it seemed like too much.

 

That makes sense.  I did my first year at night while working full time too.  Of course, the cost of living for my school was pegged to DC costs, and I was living in much cheaper Fairfax (and had a sugar momma wife with a good job). 

 

7 minutes ago, Ball Security said:

Just like any policy, the framing of it matters and I think politicians and media do a really poor job of it.  When I talk to people about student loans I get answers like “it’s not fair, I saved for and paid for college.” Or “I’ve already paid my loans back, it’s not fair.”  And those are totally understandable feelings.  But student loan relief benefits the economy and society as a whole, not just borrowers.  Though the solution is more complicated than wiping out debt.

Agree.  As well-documented in this thread, I've paid back over $200k in student loans over the past 6 years (so far, and not even counting undergrad).  No chance my loan gets forgiven because it is now private, not federal.  I still think there should be reform, but not sure I think it should all just be forgiven outright.  There is a reasonable middle position between (1) do nothing and (2) forgive all student debt.  Framing what that policy might look like is hard, but not impossible, but yea, nobody seems to frame it up well.  

 

[tshile]

1 hour ago, PleaseBlitz said:

Personally, I think everyone should have to pay back their student loans, but the interest should be knocked down to 0.5%. 

I like this idea. 
 

I don’t like the idea that student loans are a for profit business. This seems to at least resolve that aspect of it.